Sources indicate Microsoft is going to move away from what's caused the company so much headache.

The tug-of-war between Microsoft and Sony just got more interesting. Multiple sources inform me Microsoft will announce what amounts to a complete reversal on its DRM policies for Xbox One today.

What does this mean?

No more always online requirement

The console no longer has to check in every 24 hours

All game discs will work on Xbox One as they do on Xbox 360

An Internet connection is only required when initially setting up the console

All downloaded games will function the same when online or offline

No additional restrictions on trading games or loaning discs

Region locks have been dropped

It is unclear what caused this huge change in policy right after E3, a week where Microsoft executives spent days explaining, justifying, and talking about its policies to the press. I suspect Microsoft’s official announcement will say something to the effect of “we've been closely listening to consumer feedback.”

Based on what I’m being told, that’s definitely true.

I've reached out to Microsoft for comment.

Microsoft has taken an enormous amount of heat regarding DRM policies with its new console. Sony became consumer heroes at E3, announcing PlayStation 4 would not treat used games differently, and the status quo would reign. The company released this video, twisting the knife:

http://www.youtube.com/watch?feature=player_embedded&v=kWSIFh8ICaA

Of course, Xbox One is still $499 and PlayStation 4 is still $399. But today moves the needle.